OMF finds buyers around 23.61 for the third day in a row
OneMain Holdings Inc. (OMF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, OMF finished the month 5.19% higher at 24.54 after gaining $0.36 (1.49%) today, slightly underperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 24.43, the share confirmed its breakout through the previous session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (OMF as at Jun 30, 2020):
Tuesday's trading range has been $1.05 (4.41%), that's below the last trading month's daily average range of $1.53. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for OMF. Prices continued to consolidate within a tight trading range between 23.45 and 25.70 where it has been caught now for the whole last trading week.
Regardless of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 25th, OMF actually lost -7.03% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
OneMain Holdings found buyers again today around 23.61 for the third trading day in a row after having found demand at 23.45 in the previous session and at 23.51 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the nearby swing low at 23.45 where further sell stops could get activated. As prices are trading close to June's low at 23.24, downside momentum might speed up should OMF mark new lows for the month.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for OneMain Holdings. Out of 83 times, OMF closed higher 56.63% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.24% with an average market move of 2.20%.